Dubai’s international business centre has gained world recognition over the past decade. Its dynamic and diversified economy, low logistical and operational cost, excellent infrastructure, international outlook and liberal government policies has attracted many foreign investors. It is a lucrative international trading hub with no direct taxes on corporate profits and personal incomes. Liberal visa policies are also in place for countries which have FTAs with Dubai, increasing the convenience of doing businesses in Dubai.
The encouraging environment for FDI in Dubai is not without threats; existing rivals as well as new entrants in the nightclub scene in Dubai. Given the low barriers to entry as well as the increasing attractiveness of the Dubai hospitality market, these are concerns that Zouk has to be aware of. However, with the amount of experience that Zouk has had running a nightclub in Singapore over the years, this should not be an issue given that Zouk is able to bring a differentiated clubbing experience to consumers. Also, Dubai possesses modern infrastructure, advanced technology and stable legislation will makes it a suitable environment to start a business venture.
Despite the relatively conservative Islamic culture in Dubai, the government’s liberal attitude towards the nightlife industry has opened avenues for new nightclub entrants. The economic and political factors are motivators for Zouk to target the Dubai market. Apart from wanting to create an awareness in the Middle East region and gaining a sizable market share in the Dubai nightlife industry, we also hope that Zouk will be able to bring something special to the country’s nightlife scene.
Under Dubai’s foreign investment law, any foreign business that wishes to enter into their country needs to work with a local partner or a sponsor. In Dubai, all of their existing nightclubs are located in the hotels because it is the only way to obtain the operating license....